Ex-China HDG offers have indicated further rises over the past week amid the increases in the local market and rising HRC futures prices.
Specifically, offers from large Chinese mills stand at $610-620/mt FOB for May shipment, up $10/mt compared to March 5, while offer prices from smaller mills have been heard at $595-605/mt FOB, versus $585-595/mt FOB last week.
As a result, the SteelOrbis reference price for ex-China Z120 HDG stands at $595-620/mt FOB, versus $585-610/mt FOB recorded last week.
During the given period, HDG prices in the Chinese domestic market have edged up amid the slowly improving demand from downstream users. However, inventories of HDG are at relatively high levels, exerting a negative impact on prices. Transaction activities have basically recovered to normal levels, bolstering the HDG market. The turbulent international situation has pushed up ferrous metal prices. Iron ore prices might increase amid possible large-scale strikes in Australia’s Pilbara iron ore industry, which would provide support for HDG prices from the cost side. Market participants think there may be more room for HDG prices to edge up in the near term.
Average 1.0 mm SGCC hot dip galvanized spot prices in China have gained RMB 20/mt ($2.9/mt) compared to March 5, standing at RMB 3,973/mt ($576/mt) ex-warehouse, according to SteelOrbis’ information.
As of March 12, HRC futures at Shanghai Futures Exchange are standing at RMB 3,275/mt ($475/mt), increasing by RMB 66/mt ($9.6/mt) or 2.1 percent since March 5, while increasing by 0.37 percent compared to the previous trading day, March 11.
$1 = RMB 6.8959
